4. Meaning A business plan is the formal written expression of the entrepreneurial vision, describing the strategy and operations of the proposed venture. The business plan also goes by other names, depending on its intended audience. Presented to a banker, it may be called a "loan proposal." A venture capital group might call it the "venture plan" or "investment prospectus."
5. Importance of Business Plan Forces the people setting up the company to think their business idea systematically, thus making sure that it will have sufficient impact Reveals gaps in knowledge, and helps to fill them in an efficient and structured manner Ensures that rational decisions are taken, so that a focused approach will be adopted Serves as a central communication tool for the various partners
6. Lists the resources that will be needed, and thus reveals which resources will have to be acquired Is a dry run for the real thing. No damage is done if the likeliness of a crash landing is revealed in the business planning phase. Later on, however, the effects on the business, the investors and the employees of the company might well be disastrous.
7.
8. Development Process In Stage 1 you put your business idea down on paper and analyze its marketability on the basis of a few key indicators. In Stage 2 you will elaborate your business idea and turn it into a detailed business plan. Stage 3 will require the most effort on your part. Business plan in hand, you will now have to build up a company that functions.
12. Setting Up Infrastructure It includes, purchasing the land for the construction of the industry. The site must be well connected to the nearest transport network i.e. rail, road or port. Besides, the availability of the basic amenities like, water, power supply is equally essential. Also, setting up of a good telecom facility for the industry is necessary for the growth and expansion of the business. The State Government offers incentives like land and building tax concessions to new and existing entrepreneurs.
13.
14. Naming and Registering a Business In India, incorporation of a company is governed by the Companies Act 1956. The Act is administered by the Central Government through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) controls the task of incorporation of new companies and the administration of running companies.
15.
16.
17. Choosing a Form of Business Organization Proprietorship Private Limited Company Partnership Firm Co-operatives Public Limited Company Joint Hindu Family Business Limited Liability Partnership (LLP)
18. Factors effecting The nature of business is the most important factor. Scale of operations i.e. volume of business ( large, medium, small) and size of the market area (local, national, international) served are the key factors. The degree of control desired by the owner(s). Amount of capital required for the establishment and operation of a business. Comparative tax liability.
20. Pricing your Product Factors considered Setting the price objective of the firm Determining the demand of the product Estimating the costs and profits Determining the competition for the product Considering the Govt. regulations Suitable method of Pricing
21. List of essential Commodities The list of commodities declared essential under the Essential Commodities Act, 1955 (As on 15.12.2004):- A. Declared under Clause (a) of Section 2 of the Act 1. Cattle fodder, including oil cakes and other concentrates. 2. Coal, including coke and other derivatives. 3. Component parts and accessories of automobiles. 4. Cotton and woollen textiles. 5. Drugs. 6. Foodstuffs, including edible oilseeds and oils. 7. Iron and Steel, including manufactured products of Iron & Steel. 8. Paper, including newsprint, paperboard and strawboard. 9 Petroleum and Petroleum products. 10 Raw Cotton, either ginned or ungined and cotton seed. 11. Raw Jute.
22. B. Declared as essential through notifications under sub-clause (xi) of clause (a) of Section 2 of the Act 12. Jute textiles. 13. Fertilizer, whether inorganic, organic or mixed. 14. Yarn made wholly from cotton. 15. (i) seeds of food crops and seeds of fruits and vegetables, (ii) seeds of cattle fodder and (iii) jute seeds
27. Methods of Raising Capital Loans and advances from Commercial Banks Borrowing from finance companies Issue of Shares Issue of Debentures Public Deposits Reinvestment of profit Trade credit Factoring Discounting bill of exchange Bank overdraft and cash credit
Industrial & Technical Consultancy Organisation of Tamil Nadu Ltd. (ITCOT)Haryana-Delhi Industrial Consultants Ltd. (HARDICON)Andhra Pradesh Industrial and Technical Consultancy Organization Limited (APITCO)
Industrial & Technical Consultancy Organisation of Tamil Nadu Ltd. (ITCOT)Haryana-Delhi Industrial Consultants Ltd. (HARDICON)Andhra Pradesh Industrial and Technical Consultancy Organization Limited (APITCO)
